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Wire · regulatory

India paves way for return of merchant fees on digital payments

4 August 2026 · By · Wire by Fusion42

Published

4 August 2026

Topic

regulatory

◆ Sectors

Fintech

◆ Geography

India

◆ Source

Read at reuters.com →

◆ Verified

Fusion42 · 1 September 2026 · Fusion42 review

India is preparing to reintroduce merchant discount rates (MDR) on Unified Payments Interface (UPI) transactions, potentially charging fees on transactions above 2,000 rupees for merchants with high turnover, marking a shift from the current fee-free model for merchants.

This Wire brief sits within Fusion42's coverage of Fintech, and 17 sources have reported it between 4 Aug 2026 and 17 Aug 2026.

◆ ◆ The Wire takeaway

India's reintroduction of merchant fees on UPI payments opens revenue opportunities for payment firms but risks upsetting merchants dependent on free transactions. You need to rethink pricing and client segments quickly to stay competitive.

◆ Coverage

17 sources · first reported 4 Aug 2026 · latest 17 Aug 2026

◆ Related on Wire

◆ Topics

Fintechupidigital-paymentsmerchant-feesindiamdr